Shroyer v. New Cingular Wireless Services, Inc

498 F.3d 976 (9th Cir. 2007)

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Nature of the Case

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Facts

Shroyer (P) filed a class action lawsuit against New Cingular (D). P’s complaint alleges that when AT&T and Cingular merged the cellular phone services received by AT&T’s customers deteriorated significantly. Simultaneously, Cingular sought to induce the customers of AT&T to transfer their service plans and equipment from AT&T to Cingular in order to increase the company’s profits. When P complained about his service, Cingular told him that it would be improved if he signed a new contract with Cingular. P executed an electronic signature over the telephone to assent to the terms of the Agreements. The form contract stated that P agreed to waive any class actions. D filed a motion to compel arbitration and stay further proceedings in the litigation pursuant to § 32 and §43 of the Federal Arbitration Act (FAA), 9 U.S.C. §§ 3-4. After hearing oral argument, the judge granted D’s motion to compel arbitration and dismiss the action without prejudice. P appealed.